In a newly released autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's version, he selected the unorthodox academic Yanis Varoufakis to be the finance minister largely due to the latter's international reputation along with his highly compelling skills as a speaker.
“He was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader alleges that his finance chief possessed a personal agenda which involved advancing his publications and experimenting with his own theories using Greece rather than truly advocating its financial survival.
He noted how those negotiations to avoid insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental chance to demonstrate the truth of his ideas.”
Critical Negotiations
During volatile discussions, Greece found itself perilously close to leaving the single currency area.
At stake was both Greece's future but also the severe austerity policies demanded in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, a move that plunged the EU into further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a rescue deal with foreign lenders which proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew it was the end and asked him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
He also wrote how Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
This retelling of events has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
